Skip to content

VRSN · Verisign

27 filings

10-K

VRSN 10-K Annual Reports

Verisign - 27 annual reports

Filing record · 2016–202610-K1110-Q338-K94

2025
Verisign Annual Report, Year Ended Dec 31, 2025
VeriSign, Inc. (Nasdaq: VRSN) reported 2025 revenues of $1,656.6 million, up 6% from $1,557.4 million in 2024, and operating income of $1,121.0 million, up 6% from $1,058.2 million. Net income was $825.7 million, compared with $785.7 million in 2024, and diluted EPS was $8.81 versus $8.00. The company's business is centered on the .com and .net registries, which the filing says support the majority of global e-commerce, and substantially all revenue comes from operating the .com gTLD under its Cooperative Agreement with the DOC and its .com Registry Agreement, along with the .net Registry Agreement. The domain name base reached 173.5 million .com and .net registrations as of December 31, 2025, up from 169.0 million a year earlier, and 41.7 million new registrations were processed in 2025 versus 37.4 million in 2024. Cash generation and capital return were strong. Operating cash flow rose to $1,091.1 million from $902.6 million. The company repurchased 3.4 million shares for $858.6 million in 2025 and had about $1.08 billion remaining under its repurchase authorization at year end. It began a quarterly cash dividend in April 2025, paying $215.2 million in 2025, and on February 3, 2026 declared a $0.81 per share quarterly dividend, a 5.2% increase. Cash and marketable securities totaled $580.5 million at year end, while senior notes outstanding were $1,788.2 million on the balance sheet, and the company reported a total stockholders' deficit of $(2,154.2) million. Key risks flagged in the filing include the renewal and modification of the .com and .net registry agreements, pricing restrictions, growing cyber-attacks and DDoS activity amplified by AI tools, China regulatory pressure on registrations, and the pending Afilias IRP challenge to the .web gTLD, for which the company has paid a $145.2 million deposit. The filing also reports that the largest customer accounted for approximately 31% of 2025 revenues.
Feb 5, 2026
2024
Verisign Annual Report, Year Ended Dec 31, 2024
VeriSign, Inc. (Nasdaq: VRSN) reported 2024 revenues of $1,557.4 million, up 4% from $1,493.1 million in 2023, and operating income of $1,058.2 million, up 6% from $1,000.6 million. Net income was $785.7 million, compared with $817.6 million in 2023, and diluted EPS was $8.00 versus $7.90. The company operates the .com and .net registries and the Root Zone Maintainer function, and it operates two of the thirteen root servers. Revenue growth came mainly from the .com and .net price increases, partly offset by a decline in the .com and .net domain name base, which fell to 169.0 million registrations from 172.7 million at December 31, 2023. The filing states that the .com renewal rate for the third quarter of 2024 was 72.2%, versus 73.5% a year earlier. Cash flow from operations rose to $902.6 million, up 6% from $853.8 million. The company repurchased 6.6 million shares for $1.21 billion in 2024 and had $1.02 billion remaining under its repurchase program at year end. Cash and marketable securities totaled $599.9 million at December 31, 2024, down from $926.4 million. Total stockholders' deficit widened to $(1,957.9) million, and senior notes of $1,792.3 million net carrying value include $299.8 million classified as current, due April 2025. The company intends to refinance the 2025 notes with new long-term debt. The .com Registry Agreement was renewed on November 25, 2024, through November 30, 2030. The filing notes that the company cannot raise .com prices during the first two years of the new term. Management also flags risks from China, where demand has declined, from cybersecurity and DDoS attacks, and from ongoing ICANN legal challenges over the .web gTLD, for which the company has paid a $145.0 million deposit.
Feb 13, 2025
2023
Verisign Annual Report, Year Ended Dec 31, 2023
VeriSign, Inc. (Nasdaq: VRSN) describes itself as a global provider of critical internet infrastructure and domain name registry services, operating the .com and .net top-level domains, two of the thirteen global root servers, and performing the Root Zone Maintainer function. In 2023 revenues rose to $1,493.1 million from $1,424.9 million, and operating income increased to $1,000.6 million from $943.1 million. Net income was $817.6 million, or $7.90 diluted earnings per share, compared with $673.8 million in 2022. Cash flow from operations was $853.8 million. The company ended 2023 with 172.7 million .com and .net registrations in the domain name base, a decline from 173.8 million at the end of 2022, and the filing attributes weaker demand in China to the decline. Capital allocation remained focused on shareholder returns. The company repurchased 4.2 million shares for $882.8 million in 2023, and $1.12 billion remained available under the repurchase program after the board added $1.14 billion of authorization in July 2023. Cash and marketable securities totaled $926.4 million at year end, while senior notes were $1,790.2 million net of issuance costs. The stockholders' deficit was $1,581.0 million. Income tax expense fell to $158.9 million, reflecting $69.3 million of tax benefits recognized in 2023, including a $118.0 million deferred tax asset tied to non-U.S. intellectual property. Key forward-looking items include the .com Registry Agreement and Cooperative Agreement, both due for renewal by November 30, 2024, with presumptive renewal rights. The filing also discusses the pending .web gTLD matter, in which the company has paid a $145.0 million deposit while Afilias continues to challenge the auction through a second Independent Review Process. On February 8, 2024, the company announced a .com wholesale fee increase from $9.59 to $10.26, effective September 1, 2024.
Feb 15, 2024
2022
Verisign Annual Report, Year Ended Dec 31, 2022
VeriSign, Inc. (filed as VeriSign, Inc.; trades on Nasdaq under VRSN) reports that it is a global provider of domain name registry services and internet infrastructure, operating the authoritative registry for the .com and .net top-level domains, two of the 13 global internet root servers, and the Root Zone Maintainer function. For 2022, revenues were $1,424.9 million, up from $1,327.6 million in 2021, and operating income was $943.1 million, up from $866.8 million. Net income was $673.8 million, down from $784.8 million in 2021, with income tax expense of $206.4 million in 2022 versus a $2.6 million benefit in 2021 that was driven by a $165.5 million deferred tax asset recognized in 2021. Net cash provided by operating activities was $831.1 million. The company stated that .com and .net registrations in the domain name base reached 173.8 million at December 31, 2022, and that new .com and .net registrations declined to 39.9 million from 44.6 million in 2021. The final .com and .net renewal rate for the third quarter of 2022 was 73.7%, compared with 75.0% for the same quarter of 2021. The filing notes that demand from the pandemic-era surge appears to have subsided in 2022. Revenue growth was driven mainly by .com price increases effective September 1, 2021 and 2022. Capital allocation included $1.03 billion of share repurchases in 2022, with $858.8 million remaining under the program, and total principal of senior notes of $1,800.0 million at year-end. Cash and marketable securities totaled $980.4 million at December 31, 2022, against total stockholders' deficit of $1,562.2 million. The filing also announced a .com wholesale fee increase from $8.97 to $9.59 effective September 1, 2023, and a .net fee increase from $9.02 to $9.92 effective February 1, 2023. Key forward-looking items include the .com Registry Agreement and .net Registry Agreement renewal dates of November 30, 2024 and June 30, 2023, respectively, and an ongoing ICANN process regarding the .web gTLD.
Feb 17, 2023
2021
Verisign Annual Report, Year Ended Dec 31, 2021
VeriSign, Inc. (Nasdaq: VRSN) reported 2021 revenues of $1,327.6 million, up 5% from $1,265.1 million in 2020, with operating income of $866.8 million, also up 5%. Net income was $784.8 million, and diluted EPS was $7.00 versus $7.07 in 2020. Revenue growth was driven primarily by the .com TLD, where the domain name base grew 5% and a .com price increase took effect September 1, 2021. The company ended 2021 with 173.4 million .com and .net registrations in the domain name base, and processed 44.6 million new .com and .net registrations during the year. Cash flow from operations was $807.2 million, and the company repurchased $700.0 million of common stock during 2021. The balance sheet shows total stockholders' deficit of $1,260.5 million, with $1,785.7 million of senior notes outstanding. During 2021 the company issued $750.0 million of 2.700% notes due 2031 and used the proceeds, plus cash on hand, to redeem its $750.0 million 4.625% notes due 2023. Cash and cash equivalents plus marketable securities totaled $1,205.8 million at year-end. The company also recognized a $165.5 million deferred tax benefit in the fourth quarter from an intercompany transfer of non-U.S. intellectual property. The filing highlights concentration and contractual risk: substantially all revenue comes from the .com and .net registry agreements, the .com Registry Agreement expires November 30, 2024, and the .net agreement expires July 1, 2023. The company also announced an increase in the .com registry-level wholesale fee from $8.39 to $8.97, effective September 1, 2022. A pending matter involving the .web gTLD (Afilias IRP) remains open, with a $145.0 million deposit recorded for the .web contractual rights.
Feb 18, 2022
2020
Verisign Annual Report, Year Ended Dec 31, 2020
VeriSign, Inc. (Nasdaq: VRSN) describes itself as a global provider of domain name registry services and internet infrastructure, operating the registries for .com and .net, which it says support the majority of global e-commerce, and operating two of the 13 global internet root servers. Revenues rose to $1,265.1 million in 2020 from $1,231.7 million in 2019, and operating income reached $824.2 million. Net income was $814.9 million, or $7.07 per diluted share, which includes a $204.2 million income tax benefit from remeasuring previously unrecognized tax benefits. Net cash provided by operating activities was $730.2 million. The company had 165.2 million .com and .net registrations in the domain name base at year-end, up 4%. The filing highlights that substantially all revenue comes from the .com and .net registry agreements, which carry renewal dates of November 30, 2024 and June 30, 2023, respectively. The .com price is fixed at $7.85 per registration, and the company announced it will increase this wholesale fee to $8.39 effective September 1, 2021. The company repurchased 3.7 million shares for $734.9 million in 2020 and, as of February 11, 2021, the board authorized a total repurchase capacity of up to $1.0 billion. Cash and marketable securities totaled $1.17 billion at year-end, against $1.79 billion of senior notes outstanding and a stockholders' deficit of $1.39 billion. The main legal item is an Independent Review Process arbitration brought by Afilias plc against ICANN over the award of the .web gTLD to a Verisign affiliate, where the company expects a panel decision in the first quarter of 2021 and says Afilias' claims are without merit. The filing also cites COVID-19 uncertainty, with most employees working remotely, though it states that financial condition and results had not been adversely affected as of the filing date.
Feb 19, 2021
2019
Verisign Annual Report, Year Ended Dec 31, 2019
VeriSign, Inc. reported 2019 revenues of $1,231.7 million, up 1% from $1,215.0 million in 2018, and operating income of $806.1 million, up 5% from $767.4 million. Net income was $612.3 million, or $5.15 per diluted share, compared with $582.5 million, or $4.75 per diluted share, in 2018, which included a $52.0 million after-tax gain on the sale of customer contracts of its security services business. The .com and .net domain name base reached 158.8 million registrations at December 31, 2019, up from 153.0 million, and the company processed 40.3 million new .com and .net registrations in 2019 versus 38.2 million in 2018. The final .com and .net renewal rate for the third quarter of 2019 was 73.7%, compared with 74.8% a year earlier. Cash flow and capital return remained central to the story. Net cash provided by operating activities was $753.9 million in 2019, and the company repurchased 3.9 million shares for $738.5 million. On February 6, 2020, the Board authorized a repurchase of $743.0 million, which together with $257.0 million remaining brings total authorization to up to $1.0 billion. Cash, cash equivalents and marketable securities totaled $1.22 billion at year-end, against $1.79 billion of senior notes, and total stockholders' deficit was $1.49 billion. The filing highlights regulatory and contractual dependence. The .com Registry Agreement runs through November 30, 2024 and the .net agreement through June 30, 2023. A Proposed .com Amendment would allow price increases of up to 7% in certain years, and a Proposed LOI calls for $20 million in payments to ICANN over five years beginning January 1, 2021; both were open for public comment until February 14, 2020. The company also disclosed a pending Independent Review Process brought by Afilias concerning the .web gTLD, for which a $145.0 million deposit has been paid.
Feb 14, 2020
2018
Verisign Annual Report, Year Ended Dec 31, 2018
VeriSign, Inc. (Nasdaq: VRSN) reported 2018 revenues of $1,214,969 thousand, up from $1,165,095 thousand in 2017, and operating income of $767,392 thousand. Net income was $582,489 thousand, or $4.75 per diluted share, compared with $457,248 thousand in 2017. The filing states that net income for 2018 includes a $52.0 million after-tax gain on the December 5, 2018 sale of the Security Services business to Neustar, Inc. Revenue comes overwhelmingly from Registry Services for the .com and .net domain name registries, with the domain name base reaching 153.0 million registrations as of December 31, 2018. The company's capital structure changed significantly in 2018. It settled the $1.25 billion principal of its subordinated convertible debentures in cash and issued 26.1 million shares for the $3.17 billion conversion excess. It repurchased 4.4 million shares for $600.0 million under its repurchase program, and the Board authorized a new repurchase of approximately $602.9 million on February 7, 2019, bringing total available authorization to $1.0 billion. Stockholders' deficit was $1,385,474 thousand at year end, and senior notes outstanding were $1,785,047 thousand net of issuance costs. Cash, cash equivalents and marketable securities totaled $1,269,669 thousand. The filing highlights regulatory and contractual dependencies for investors. Amendment 35 to the Cooperative Agreement with the Department of Commerce, signed October 26, 2018, extends the .com agreement term to November 30, 2024 and permits .com wholesale price increases of up to 7% in each of the final four years of each six-year period. Management expects 2019 revenue to grow, partly offset by the Security Services sale, and expects cash paid for income taxes of $95.0 million to $115.0 million in 2019.
Feb 15, 2019
2017
Verisign Annual Report, Year Ended Dec 31, 2017
VeriSign, Inc. (Nasdaq: VRSN) reported 2017 revenues of $1,165.1 million, up 2% from $1,142.2 million in 2016, and operating income of $707.7 million, up 3%. Net income was $457.2 million, compared with $440.6 million in 2016. The company is the exclusive registry for the .com and .net domains, with the .com and .net domain name base reaching 146.4 million registrations at December 31, 2017. Operating cash flow was $702.8 million. The company repurchased 6.3 million shares for $592.7 million during 2017 and, on February 8, 2018, its Board authorized a new repurchase program of approximately $585.8 million, bringing total available authorization to up to $1.0 billion. The filing highlights regulatory and contractual dependence. The Cooperative Agreement with the U.S. Department of Commerce expires November 30, 2018 unless the DOC extends it, and the .com Registry Agreement's pricing is capped at $7.85 per registration. The company reported a provisional $162.4 million U.S. tax on accumulated foreign earnings and a $186.8 million benefit from remeasuring deferred taxes under the Tax Cuts and Jobs Act. Total stockholders' deficit was $1.26 billion, and senior notes stood at $1.78 billion net of issuance costs. In February 2018, the company called its $1.25 billion 3.25% Subordinated Convertible Debentures for redemption on May 1, 2018, and intends to settle principal in cash. Key risks in the filing include the expiration of the Cooperative Agreement, ICANN-driven contract amendments due by October 20, 2018, the impact of GDPR beginning May 2018, and DDoS and security threats. China revenue declined 16% in 2017 to $106.5 million after a 53% increase in 2016, which the company attributed to non-renewal of registrations from a surge in the second half of 2015 and early 2016.
Feb 16, 2018
2016
Verisign Annual Report, Year Ended Dec 31, 2016
VeriSign, Inc. (Nasdaq: VRSN) reported 2016 revenues of $1,142.2 million, up from $1,059.4 million in 2015, with operating income of $686.6 million and net income of $440.6 million, or $3.42 diluted earnings per share. The filing describes the company as a global provider of domain name registry services and internet security. Registry Services, which operates the .com and .net registries, generates substantially all revenue. On February 9, 2017, the company agreed to sell its iDefense business, and management expects revenues to remain consistent in 2017, partly offset by the planned iDefense divestiture. Key operating and contractual developments include the October 2016 extension of the .com Registry Agreement through November 30, 2024, and the transition of the Root Zone Maintainer function to a new agreement with ICANN. The .com and .net domain name base reached 142.2 million at December 31, 2016. The fourth-quarter 2016 final renewal rate was 67.5%, compared with 73.3% a year earlier. The .com price is capped at $7.85 under the Cooperative Agreement, and the Cooperative Agreement expires November 30, 2018 unless the DOC extends it. Capital allocation remained a focus. The company repurchased 7.8 million shares for $636.5 million in 2016, and on February 9, 2017 its Board authorized up to $1.0 billion in total repurchases. Cash, cash equivalents and marketable securities totaled $1.8 billion at year-end, against $1.25 billion of principal on Subordinated Convertible Debentures, which were convertible through March 31, 2017. The company also disclosed a Civil Investigative Demand from the DOJ Antitrust Division received January 18, 2017 concerning its becoming the registry operator for the .web gTLD, and it has not estimated a potential outcome.
Feb 17, 2017
2015
Verisign Annual Report, Year Ended Dec 31, 2015
VeriSign, Inc. (NASDAQ: VRSN) reported 2015 revenues of $1,059.4 million, up 5% from $1,010.1 million in 2014, and operating income of $605.9 million, up from $564.4 million. Net income was $375.2 million, compared with $355.3 million in 2014. Registry Services, which operates the .com and .net domain registries, make up substantially all of revenue. The domain name base for .com and .net grew to 139.8 million at December 31, 2015, from 131.5 million a year earlier, and the filing attributes revenue growth mainly to that increase and to .net fee increases. The company expects revenues to keep increasing in 2016. Cash flow from operations was $651.5 million in 2015, and the company repurchased 9.3 million shares for $621.9 million. Cash, cash equivalents and marketable securities totaled $1.9 billion at year-end, against $1.25 billion of principal on Subordinated Convertible Debentures and $1.235 billion of senior notes. Stockholders' deficit was $1.07 billion. In February 2016 the Board authorized a new repurchase of about $611.2 million, bringing the total authorization to up to $1.0 billion. The filing highlights significant regulatory and contractual dependence. The .com Registry Agreement runs through November 30, 2018, and any renewal requires Department of Commerce approval. The .com price is fixed at $7.85 under Amendment 32, subject to limited increases. One customer accounted for approximately 31% of 2015 revenues. The filing also notes a pending Root Zone Maintainer agreement with ICANN tied to the IANA transition, and risks from new gTLD delegations.
Feb 19, 2016
2014
Verisign Annual Report, Year Ended Dec 31, 2014
VeriSign, Inc. (NASDAQ: VRSN) reported 2014 revenues of $1,010.1 million, up 5% from $965.1 million in 2013, and operating income of $564.4 million, up 7% from 2013. The Company operates the .com and .net registries, two of the Internet's root servers, and the root-zone maintainer function, and it has one reportable segment comprising Registry Services and NIA Services. Revenue is driven mainly by domain name registrations and renewals, and the .com and .net domain base grew to 130.6 million at December 31, 2014, a 3% increase. The filing notes that growth was limited by economic conditions, the introduction of new gTLDs, registrar marketing changes, and search algorithm changes, and management expects revenue growth in 2015 to continue but at a slower rate. Net income was $355.3 million in 2014, compared with $544.5 million in 2013, which included a $375.3 million income tax benefit from a worthless stock deduction. Cash flow from operations was $600.9 million. The Company repurchased 16.3 million shares for $867.1 million during 2014 and, effective January 30, 2015, the Board authorized repurchases of approximately $452.9 million, bringing total authorization to up to $1.0 billion. Stockholders' deficit was $883.5 million at year-end, and the Company carried $1.25 billion of 3.25% Subordinated Convertible Debentures and $750.0 million of 4.625% Senior Notes. Cash, cash equivalents and marketable securities totaled $1.42 billion, of which $939.0 million was held by foreign subsidiaries. Key risks highlighted include dependence on the .com Registry Agreement and DOC approval of pricing, uncertainty around the introduction of over 1,300 new gTLDs by ICANN, the NTIA's announced intent to transition IANA oversight, potential tax consequences from the IRS review of the worthless stock deduction, and the possible need to settle the convertible debentures in cash.
Feb 13, 2015
2013
Verisign Annual Report, Year Ended Dec 31, 2013
VeriSign, Inc. (filed under the name VeriSign, Inc.; trades on NASDAQ as VRSN) reported fiscal 2013 revenues of $965.1 million, up 10% from $873.6 million in 2012, and operating income of $528.2 million, up from $457.3 million. Revenue growth came mainly from Registry Services for .com and .net, which the filing attributes to a 5% increase in active .com and .net domain names to 127.2 million and to fee increases in January 2012 and July 2013. Net income was $544.5 million, boosted by a $375.3 million income tax benefit from a worthless stock deduction, partly offset by $167.1 million of tax expense tied to an intended repatriation of foreign cash. Diluted EPS was $3.49 versus $1.95 in 2012. The balance sheet shows $1.72 billion in cash, cash equivalents and marketable securities against $2.21 billion of Subordinated Convertible Debentures principal (3.25% due 2037) and $750.0 million of 4.625% Senior Notes due 2023 issued in April 2013. Stockholders' equity was a deficit of $423.6 million. The company repurchased 21.0 million shares for $1.0 billion in 2013, and on January 31, 2014 its board authorized a further $527.6 million buyback, bringing the 2014 program to $1.0 billion. Operating cash flow was $579.4 million, and the company plans to repatriate approximately $700.0 million to $800.0 million of foreign cash in the second or third quarter of 2014. The filing highlights concentration and regulatory risk. Substantially all revenue comes from Registry Services, and one customer accounted for approximately 30% of revenues in each of the last three years. Pricing for .com domain names is capped at $7.85 under the renewed .com Registry Agreement through November 30, 2018, and the company is subject to ICANN and Department of Commerce oversight. Management flags the rollout of new gTLDs, which began October 23, 2013, as a possible source of competition and operational risk, and notes the company's 2011 security breach.
Feb 21, 2014
2012
Verisign Annual Report, Year Ended Dec 31, 2012
VeriSign, Inc. (NASDAQ: VRSN) reports that it is a provider of Internet infrastructure services, operating one reportable segment, Naming Services, which comprises Registry Services (operator of the .com, .net, .cc, .tv and .name registries and back-end systems for .gov, .jobs and .edu) and Network Intelligence and Availability (NIA) Services (iDefense, Managed DNS and DDoS Protection). For 2012, revenues were $873.6 million, up 13% from $772.0 million in 2011, driven mainly by a 6% year-over-year increase in active .com and .net domain names to 121.1 million and the .com and .net registry fee increases effective in January 2012. Operating income rose to $457.3 million, up 39%, and net income was $320.0 million, or $1.95 per diluted share, compared with $142.9 million in 2011. Cash flow from operations was $537.6 million, up 60%. Capital allocation was active in 2012: the company repurchased 7.7 million shares for $314.6 million and, as of December 31, 2012, had $975.5 million remaining under the 2012 Share Buyback Program. Cash, cash equivalents and marketable securities totaled $1.56 billion at year end, while $1.25 billion of 3.25% Convertible Debentures due 2037 and $100.0 million drawn on a $200.0 million revolving facility remained outstanding. Stockholders' deficit narrowed to $9.3 million. The main investor considerations are regulatory and contractual. The new .com Registry Agreement and Amendment 32 with the Department of Commerce run through November 30, 2018, cap the .com price at $7.85 subject to limited increases, and require DOC approval for price increases. The company also faces competition from roughly 1,400 new gTLDs expected to launch from 2013, and it expects little significant revenue from new gTLDs before 2014. Pending securities litigation includes a derivative suit over incentive compensation plans and a Glaser securities class action filed January 16, 2013.
Feb 28, 2013
2011
Verisign Annual Report, Year Ended Dec 31, 2011
VeriSign, Inc. (NASDAQ: VRSN) reported 2011 revenues of $771,978 thousand, up 13% from $680,578 thousand in 2010, driven primarily by an 8% year-over-year increase in active .com and .net domain names and July 2010 registry fee increases. Operating income was $329,389 thousand, up 42% from 2010, while net income attributable to Verisign stockholders was $142,891 thousand, or $0.86 per diluted share. Registry Services, which operates the authoritative directory for .com, .net and related domains, generates substantially all revenue; NIA Services (iDefense, Managed DNS, DDoS Protection) is not significant to consolidated revenue. Capital returns were significant in 2011: a special dividend of $2.75 per share ($463.5 million) was paid in May 2011, and 16.3 million shares were repurchased for $534.6 million. Cash, cash equivalents and marketable securities totaled $1,346,209 thousand at year-end, down from $2,060,866 thousand, and the company took on $100.0 million under a new $200.0 million revolving credit facility, partly to buy its Reston, Virginia headquarters for $118.5 million. Stockholders' equity was a deficit of $(88,107) thousand at December 31, 2011. Key risks flagged in the filing include the expiration of the .com Registry Agreement on November 30, 2012, which the company says it has begun renewing with ICANN and the DOC, the potential impact of new gTLDs, and a 2010 corporate network breach that was not sufficiently escalated to management. The company also disclosed that its Interim Chief Financial Officer, John D. Calys, is serving while a permanent CFO is sought, following the resignation of the prior CFO in 2011.
Feb 24, 2012
2010
Verisign Annual Report, Year Ended Dec 31, 2010
VeriSign, Inc. reported 2010 results as a company now focused on a single reportable segment, Naming Services, which comprises Registry Services (operator of the authoritative directory for .com, .net, .cc, .tv and .name) and Network Intelligence and Availability (NIA) Services. During 2010 the company completed the sale of its Authentication Services business to Symantec for cash consideration of approximately $1.14 billion, net of cash held by transferred subsidiaries of $127.5 million and transaction costs of $10.8 million, and ceased operations of its Content Portal Services business. Both are presented as discontinued operations, which produced a gain on sale of $726.2 million, net of tax of $254.3 million, and drove consolidated net income attributable to Verisign stockholders of $830,967 thousand, compared with $245,553 thousand in 2009. Continuing operations showed revenues of $680,578 thousand in 2010, up from $615,947 thousand in 2009, and operating income of $232,283 thousand, up from $159,958 thousand. The filing attributes the revenue increase primarily to a 9% year-over-year rise in active .com and .net domain names, to 105.2 million, and to registry fee increases in October 2008 and July 2010. Interest expense rose to $157,667 thousand, including $109,113 thousand of contingent interest paid to convertible debenture holders following the December 2010 special dividend of $3.00 per share, totaling $518.2 million. The filing highlights a material dependence on the .com and .net registry agreements, which expire in 2012 and 2011 respectively, and on pending litigation brought by CFIT under the Sherman Act, which the District Court dismissed on February 11, 2011 with partial leave to amend. Cash, cash equivalents and marketable securities totaled $2,060,866 thousand at December 31, 2010, and the company repurchased 15.7 million shares in 2010 for $437.7 million, with approximately $650 million in stockholder returns planned for 2011.
Feb 24, 2011
2009
Verisign Annual Report, Year Ended Dec 31, 2009
VeriSign, Inc. reported 2009 revenues from continuing operations of $1.03 billion, up 7% from $964.7 million in 2008, driven mainly by Naming Services ($615.9 million, up 12%) and Authentication Services ($410.1 million, up 3%). Income from continuing operations was $197.5 million, or $1.03 per diluted share, versus $85.4 million in 2008. Consolidated net income attributable to VeriSign common stockholders was $245.6 million, or $1.28 per diluted share, compared with a net loss of $374.3 million in 2008, which reflected large losses on divestitures. During 2009 the company substantially completed its strategy of divesting or winding down non-core businesses, selling several units for aggregate net cash consideration of $477.4 million and recording an aggregate gain of $35.2 million. The company is winding down its Content Portal Services business by the end of 2010. Cash and cash equivalents were $1.48 billion at December 31, 2009, against $1.25 billion of 3.25% convertible debentures due 2037 with a carrying amount of $574.4 million, and the company repurchased 11.3 million shares for $252.8 million under its 2008 Share Buyback Program, leaving $697.2 million available. The filing highlights risks tied to ICANN and Department of Commerce agreements, including the .com registry agreement running through November 30, 2012, and the .net agreement through June 30, 2011. Management also announced fee increases for .com (to $7.34 from $6.86) and .net (to $4.65 from $4.23) effective July 1, 2010, and expects continued revenue growth in 2010.
Feb 26, 2010
2008
Verisign Annual Report, Year Ended Dec 31, 2008
VeriSign, Inc. (NASDAQ: VRSN) reported 2008 revenues from continuing operations of $961.7 million, up 13% from $847.5 million in 2007, with income from continuing operations of $92.6 million compared with a loss of $147.7 million in 2007. The net loss widened to $374.7 million, or $1.87 per diluted share, driven by $467.3 million of losses from discontinued operations, mainly estimated losses on assets held for sale of $406.7 million net of tax, as the company executes its divestiture of non-core businesses. The Internet Infrastructure and Identity Services (3IS) segment grew 20% to $936.3 million, led by Naming Services (about 90.4 million .com and .net names, up 12%) and SSL Certificate Services (installed base of about 1.1 million, up 13%). Stockholders' equity fell to $50.8 million from $1.50 billion at year-end 2007, reflecting $1.33 billion of share repurchases in 2008 and the net loss. Cash, cash equivalents and restricted cash totaled $790.9 million at December 31, 2008, against $1.25 billion of 3.25% convertible debentures due 2037 (carrying value $1.26 billion). The company has $950.0 million remaining under its repurchase programs, and it had no outstanding borrowings under its $500.0 million credit facility. Management reports that the economic downturn is slowing growth expectations for 2009, particularly for on-line advertising-related domain names, and it has signed a binding agreement on March 2, 2009 to sell its Communications Services business for $230.0 million. The filing also highlights ongoing management changes, with D. James Bidzos serving as interim CEO and Brian G. Robins as acting CFO, along with a goodwill impairment of $77.6 million for VeriSign Japan and a $79.1 million loss on the sale of part of the Mountain View headquarters. The company also restated quarterly figures for historical revenue timing and unrecorded payroll tax penalties, and it notes that FSP APB 14-1 will significantly change convertible debt accounting from 2009.
Mar 3, 2009
2007
Verisign Annual Report, Year Ended Dec 31, 2007
VeriSign, Inc. (filed under the name VeriSign, Inc.; now trading on NASDAQ Global Select Market as VRSN) reported 2007 revenues of $1.50 billion, down from $1.56 billion in 2006, and a net loss of $139.5 million, compared with net income of $379.0 million in 2006. The loss was driven by a $182.2 million goodwill impairment and $110.1 million in restructuring, impairments and other charges, both tied to the company's decision to divest non-core businesses. Operating loss was $221.5 million. Revenue from the Internet Services Group rose to $916.98 million, while Communications Services Group revenue fell to $579.31 million, largely reflecting the January 2007 divestiture of majority ownership in Jamba. The company plans to divest communications, billing and commerce, content delivery, messaging and enterprise security businesses, keeping Naming Services, SSL Certificate Services and Identity and Authentication services. Management reported a material weakness in internal control over financial reporting related to stock administration practices, and KPMG issued an adverse opinion on internal control. Cash and cash equivalents were $1.38 billion at year-end 2007, against $1.25 billion of 3.25% junior subordinated convertible debentures due 2037. In early 2008 the company repurchased shares under a $600 million accelerated share repurchase agreement and additional programs. For investors, the filing highlights a transition year: a shrinking revenue base as non-core operations are sold, significant impairment and restructuring charges, a material weakness requiring remediation, and capital returned to shareholders through substantial buybacks funded in part by the convertible debt.
Feb 29, 2008
2006
Verisign Annual Report, Year Ended Dec 31, 2006
VeriSign, Inc. (filing as VeriSign; now trading as VRSN on NASDAQ Global Select Market) filed this Form 10-K for fiscal 2006 on July 12, 2007, a delayed filing that restates the balance sheet as of December 31, 2005 and the statements of income, stockholders' equity, comprehensive income and cash flows for 2005 and 2004, following an independent review of historical stock option grant practices. The company recorded $171.4 million in pre-tax stock-based compensation expense related to past grants, and the filing discloses a material weakness in internal control over financial reporting, with management concluding that disclosure controls were not effective as of December 31, 2006. KPMG issued an adverse opinion on internal control effectiveness while giving an unqualified opinion on the financial statements. Reported 2006 results from continuing operations show revenues of $1.575 billion (down from $1.613 billion restated for 2005), net income of $379.0 million, which includes a $349.8 million income tax benefit from releasing a $236.4 million valuation allowance and a $113.4 million favorable IRS ruling. Total assets were $3.97 billion and stockholders' equity was $2.38 billion at year-end 2006. Cash, cash equivalents and short-term investments totaled $699.8 million, against $199.0 million borrowed under a $500 million credit facility that the company was not in compliance with on reporting covenants as of the filing date (waived through July 13, 2007). Leadership and legal matters dominated the period. CEO Stratton Sclavos resigned May 27, 2007 and William A. Roper, Jr. became President and CEO; CFO Dana Evan resigned July 10, 2007 and Albert E. Clement was appointed CFO. The company disclosed a federal grand jury subpoena and a formal SEC investigation order related to option grants, a $80 million insurer-funded securities litigation settlement, and numerous pending class actions tied to Jamba content services. In 2007 the company also formed a joint venture with Fox Entertainment that gives Fox a 51% interest in the Jamba business.
Jul 12, 2007
2005
Verisign Annual Report, Year Ended Dec 31, 2005
VeriSign, Inc. (NASDAQ: VRSN) reported 2005 revenues of $1,609.5 million from continuing operations, up 44% from $1,118.3 million in 2004, driven mainly by the Communications Services Group, whose revenues rose 62% to $975.7 million on a $377.1 million increase in content services. The Internet Services Group grew 23% to $633.8 million, with active .com and .net domain names increasing 30% to 50.0 million. Net income was $406.5 million, or $1.54 diluted per share, including a $251.8 million net-of-tax gain on the November 2005 sale of the payment gateway business to PayPal for $370 million in cash. Income from continuing operations was $138.6 million, down from $173.6 million in 2004, which included a $74.9 million gain on the VeriSign Japan stock sale. The filing highlights rising costs in the content business. Sales and marketing expense rose 99% to $480.5 million, including $204.1 million of increased advertising and promotion for content services. Management said content revenues declined sequentially in the third and fourth quarters of 2005 because of competition, pricing pressure and fewer subscribers, and expects content revenues to decline again in the first quarter of 2006. The company also faces multiple class action and regulatory matters tied to Jamster ringtone marketing, plus ongoing litigation with ICANN. Capital and shareholder returns were significant. Operating cash flow was $510.8 million, and cash, cash equivalents and short-term investments totaled $854.8 million at year-end. VeriSign repurchased 16,495,224 shares under its $500 million program for $380.3 million in 2005, with $119.7 million remaining. It completed several acquisitions, including LightSurf for $279 million in stock and iDefense for $37.8 million in cash, and announced further 2006 acquisitions including Kontiki and 3united. The company expects SFAS 123R to have a significant adverse impact on future earnings.
Mar 13, 2006
2004
Verisign Annual Report, Year Ended Dec 31, 2004
VeriSign, Inc. reported 2004 revenues of $1,166,455 thousand ($1.17 billion), up from $1,054,780 thousand in 2003, and net income of $186,225 thousand, or $0.72 per diluted share, compared with a net loss of $259,879 thousand in 2003. Operating income was $131,728 thousand, compared with an operating loss of $228,250 thousand in 2003. The improvement was driven by growth in both the Internet Services Group, where revenues rose to $564,148 thousand, and the Communications Services Group, where revenues rose to $602,307 thousand. The Communications growth was largely due to the June 2004 acquisition of Jamba!, which contributed approximately $180.8 million of revenue. The 2003 results were affected by the sale of the Network Solutions registrar business in November 2003, and the company's amortization and impairment charges fell to $79,440 thousand in 2004 from $335,505 thousand in 2003. The balance sheet ended the year with cash, cash equivalents and short-term investments of $737.4 million and total stockholders' equity of $1,691,997 thousand. Operating cash flow was $365,338 thousand. During 2004 the company repurchased approximately 4.4 million shares for about $113 million, and about $167 million remained under its repurchase authorization at year end. Management expects revenue growth in both segments in 2005, and it anticipates that adopting SFAS No. 123R in the third quarter of 2005 will have a significant adverse impact on its statements of operations and net income per share. The filing also flags material risks. These include a pending bid for the .net registry, which ICANN was scheduled to select in late March 2005; ongoing litigation with ICANN over SiteFinder and the RFP process; and a $270 million stock-based acquisition of LightSurf Technologies, expected to close by the end of the first quarter of 2005.
Mar 16, 2005
2003
Verisign Annual Report, Year Ended Dec 31, 2003
VeriSign, Inc. reported a net loss of $259.9 million for 2003 on revenues of $1,054.8 million, compared with a net loss of $4,961.3 million in 2002. The decline in losses reflects much lower amortization and impairment of goodwill and other intangible assets, which totaled $335.5 million in 2003 versus $4,894.7 million in 2002. Revenues fell 14% from 2002, driven mainly by the sale of the Network Solutions domain name registrar business on November 25, 2003 (Network Solutions revenues declined 32%) and a 17% decline in Internet Services Group revenues, partly offset by a 5% increase in Communications Services Group revenues. The company ended 2003 with $723.7 million in cash, cash equivalents and short-term investments, up from $385.5 million, and generated $358.4 million in operating cash flow. Stockholders' equity was $1,383.7 million at year end, and the accumulated deficit stood at approximately $21.7 billion. Management expects 2004 revenues to decline because of the Network Solutions sale, with moderate growth in the Internet Services Group and flat to moderate growth in the Communications Services Group. Subsequent to year end, VeriSign acquired Guardent for approximately $135 million, of which about $65 million was cash. The filing also details ongoing litigation, including patent suits (NetMoneyIN, IDN Technologies, and Stambler, which was decided in VeriSign's favor at trial), securities class actions, four lawsuits related to the Site Finder service, and a lawsuit VeriSign filed against ICANN on February 26, 2004. Investors should weigh the company's restructuring, the registry agreement terms with ICANN, and the dependence on a relatively small number of products and services.
Mar 15, 2004
2002
Verisign Annual Report, Year Ended Dec 31, 2002
VeriSign, Inc. reported 2002 revenues of $1.22 billion, up from $983.6 million in 2001, but posted a net loss of $4.96 billion for 2002, driven mainly by a $4.6 billion impairment charge for goodwill and other intangible assets recorded in the second quarter of 2002. Revenue growth was driven by the acquisitions of Illuminet Holdings (December 2001) and H.O. Systems (February 2002), which lifted Telecommunication-related revenues; Mass Markets Division revenues fell 26% to $412.1 million as deferred revenue recognized from prior-year domain name sales declined and fewer names were under management at Network Solutions (9.3 million at year-end 2002 versus 13.6 million at year-end 2001). The balance sheet shrank sharply: total assets were $2.39 billion at December 31, 2002, down from $7.54 billion, and stockholders' equity fell to $1.58 billion from $6.51 billion. Cash, cash equivalents and short-term investments declined to $403.9 million, and working capital turned negative at $(61.0) million. Operating cash flow was $240.1 million in 2002. Management expects restructuring-related savings of approximately $56 million in 2003 and planned 2003 capital expenditures of $120 million to $130 million. The filing also details significant legal exposure, including a securities class action consolidated in the Northern District of California, a patent suit by NetMoneyIN, and an FTC Civil Investigative Demand relating to a direct mail offer by the registrar business. The company stated that a patent case brought by Leon Stambler ended in a jury verdict for VeriSign and RSA Security on March 7, 2003.
Mar 31, 2003
2001
Verisign Annual Report, Year Ended Dec 31, 2001
VeriSign, Inc. reported a net loss of $13.36 billion for 2001 on revenues of $983.6 million, up from $474.8 million in 2000. The loss was driven mainly by $13.57 billion of amortization and write-down of goodwill and other intangible assets, including a $9.9 billion non-cash impairment charge recorded in the second quarter of 2001 tied to acquisitions paid for with common stock. Operating loss was $13.41 billion. Revenue growth was primarily attributed to the June 2000 acquisition of Network Solutions, with Web presence and trust services contributing $555.1 million and managed security and network services plus registry and telecommunications services together contributing $428.5 million, of which registry and telecommunications rose to $130.5 million. Balance sheet figures show total assets fell to $7.54 billion from $19.20 billion, and stockholders' equity fell to $6.51 billion from $18.47 billion, reflecting the goodwill write-downs. Cash, cash equivalents and short-term investments totaled $726.7 million at year-end, and net cash from operating activities was $227.5 million. The company completed the Illuminet Holdings acquisition in December 2001 (about 30.6 million shares, purchase price of approximately $1.4 billion) and the H.O. Systems acquisition in February 2002 for approximately $350 million in cash. The filing states that goodwill will no longer be amortized from January 1, 2002 under SFAS No. 142, reducing quarterly amortization of goodwill and intangibles from approximately $460 million to approximately $84 million, excluding H.O. Systems. The company also faces ongoing litigation, including the Stambler patent suit and a class claim seeking approximately $1.7 billion in damages over domain name registration fees, and the Department of Justice closed its review of the THAWTE acquisition on March 11, 2002.
Mar 19, 2002
2000
Verisign Annual Report, Year Ended Dec 31, 2000
VeriSign, Inc. reported a fiscal 2000 net loss of $3.12 billion, or $(19.57) per share, on revenues of $474.8 million, compared with revenues of $84.8 million in 1999 and net income of $4.0 million. The loss was driven mainly by $3.19 billion of amortization of goodwill and other intangible assets from acquisitions, including Network Solutions, Inc., acquired in June 2000 for aggregate consideration of approximately $19.6 billion. Operating costs were $3.68 billion in total, and the company states it had an accumulated deficit of approximately $3.2 billion at December 31, 2000. The balance sheet is dominated by intangibles: goodwill and other intangible assets, net, were $17.66 billion, against stockholders' equity of $18.47 billion and total assets of $19.20 billion. Cash, cash equivalents and short-term investments were $1.03 billion, and net cash provided by operating activities was $192.0 million in 2000. The company expects goodwill and intangible amortization of up to $1.4 billion per quarter until those balances are fully amortized, which it currently anticipates ending in 2004. Planned 2001 capital expenditures are approximately $135 million to $145 million. Revenue is split across Web presence services ($282.6 million), enterprise services, net ($138.3 million) and Internet technology consulting ($53.8 million). Key risks disclosed include the Network Solutions domain registry and registrar arrangements with ICANN and the Department of Commerce, a patent infringement suit filed by Leon Stambler, a purported class action seeking approximately $1.7 billion in damages over registration fees, and a Department of Justice review of the THAWTE acquisition. Mr. James P. Rutt, President of the Mass Markets Division, resigned effective April 1, 2001.
Mar 28, 2001
1999-A
Verisign Annual Report (Amendment), Year Ended Dec 31, 1999
This filing amends Part III (Items 10 through 13) of VeriSign, Inc.'s Annual Report on Form 10-K, which was filed on March 22, 2000. It covers directors and executive officers as of December 31, 1999, executive and director compensation, beneficial ownership as of March 3, 2000, and related-party transactions. The filing does not include financial statements or operating results. The filing reports 114,820,683 shares of common stock outstanding at March 3, 2000. Putnam Investments Inc. (8.5%), Janus Capital Corporation (7.9%), and Chairman D. James Bidzos (4.6%) are the largest holders listed. All officers and directors as a group (11 persons) held 6.2%. Chief Executive Officer Stratton D. Sclavos received a 1999 salary of $250,000, a bonus of $78,125, and options on 400,000 shares. VeriSign granted options on 6,869,950 shares to employees during 1999 at an exercise price of $37.06 per share. The closing price on December 31, 1999 was $190.94 per share. The filing also discloses that VeriSign paid approximately $738,000 in 1999 to Tomlinson Zisko Morosoli & Maser LLP, a law firm in which director and Secretary Timothy Tomlinson is a partner. It reports several late Section 16(a) filings by Mr. Bidzos, Mr. Sclavos, and Mr. Cowan. The Directors Stock Option Plan had 200,000 shares available for grant at December 31, 1999, and a proposal to add 250,000 shares was pending.
Apr 27, 2000